Advocacy: Changes to Quebec's Consumer Protection Act
Marcel Buerkler, CFLA - October 13, 2023 - Featured Content Area
Overview:
In a surprise move, the National Assembly of Quebec, on October 3, 2023, quickly adopted Bill 29, An Act to protect consumers from planned obsolescence and to promote the durability, repairability and maintenance of goods (Act), which amends the Quebec Consumer Protection Act (CPA).
The areas impacting asset-based vehicle financing leasing:
The new law places far-reaching obligations and restrictions, which are now in force or will come into force over the next three years in the following areas relevant to asset-based vehicle financing and leasing:
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10-day cooling-off period for extended warranty agreements (in force, CPA section 228.3): Merchants who offer a contract of additional warranty must inform consumers that they have a 10-day statutory window during which they may rescind, in writing, the extended warranty agreement without cost or penalty.
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“Lemon Law” for seriously defective automobiles (in force): The owner or long-term lessee of a vehicle now has the right to request that the courts declare the vehicle a "seriously defective automobile" where the consumer has exhausted a prescribed number of unsuccessful repair attempts for the same or unrelated defects.
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Prohibition on fees that can be claimed for long-term lease agreements (in force, CPA section 150.9.1), notably charges on the grounds that the part is not an original part from the manufacturer or that the maintenance service was not performed by the manufacturer or a merchant approved by the manufacturer.
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Free vehicle inspection for lessees (forthcoming): Merchants must offer lessees a vehicle inspection free of charge at least 90 days before the end of the leasing period and, if consented to, to remit the vehicle's inspection report to the lessee – failing which the merchant will be prohibited from claiming fees for abnormal wear and tear.
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The new legislation further includes provisions on the prohibition of planned obsolescence, good working order warranties, a new administrative monetary penalty framework and amended penal provisions built on existing enforcement mechanisms, and new powers for the Government of Quebec to make regulations determining technical or manufacturing standards for goods, including standards for ensuring interoperability between goods and chargers.
The new legislation is broad in scope, with several critical definitions, durations, and measures to be determined through regulation. Member companies are advised to study the new legislation carefully and to revise their agreements to comply with the provisions that came into force on October 5, 2023.
Next steps:
We're continuing to monitor developments, and we'll inform you of any relevant updates.